Tracsis, Leeds transport data firm, buys in US

Leeds-based transport data analytics firm Tracsis plc said on Monday it has acquired RailComm LLC, a North American based rail technology software and services provider.

For the financial year ended December 31, 2021, RailComm delivered revenue of $6 million.

The acquisition will be made for an initial cash payment of $11.5 million.

An additional contingent consideration of up to $2.7 million is payable subject to RailComm achieving certain financial targets in the first full year post acquisition.

“Headquartered in Fairport, New York and established in 1999, RailComm provides mission critical automation and control solutions that reduce costs, increase safety, and improve operational efficiency for rail passenger/freight operators and rail served ports/industrials,” said Tracsis.

“Its two core products are rail yard automation and computer aided dispatching and it has a wide and diversified client base across the North American market.

“The business has good levels of annual recurring software revenues in addition to large project delivery/systems integration work …

“In addition to the significant growth opportunities that exist within RailComm’s core rail markets, we now have direct access to a long-established sales network into a significant number of rail clients in the North America market.

“This will enable Tracsis to progressively market its existing portfolio of rail products and services, with Remote Condition Monitoring the initial area of focus.”

Tracsis CEO Chris Barnes said: “This is an important strategic acquisition for Tracsis plc, providing a platform onto which we can start to internationally expand the Tracsis Group and its rail product portfolio via direct access to the significant and growing North American rail technology market.

“We are delighted to welcome all of the RailComm team into the Tracsis Group and look forward to a successful future working together.”

RailComm president Joe Forgione said: “The RailComm team is very excited about joining the Tracsis Group.

“Both businesses have a long history of driving innovation via R&D built around long-term client relationships and we look forward to expanding our ability to offer a much broader range of rail technology solutions across our extensive client base in North America.”